Project Control

Adapted from Labi,S & Moavenzadeh(2007)

 Project Control
 Project control cycle

 Project Audit

 Tracking and monitoring of project progress

Recall: The 5 Phases of Project Management

FEASIBILITY DESIGN, CLOSEOUT

DEVELOPMENT CLOSEOUT OPERATIONS
PLANNING

Finance Organization Monitoring & Control

Evaluation Estimation Changes & Claims
Planning Quality & Reviews

Actual Start of Project

 Monitoring & Control: A Feedback Process

Detect
deviations

Monitoring Control
1. Measurement 1. Actions
2. Performance Analysis 2. Revised Plans, Cash
Flows, Schedules, etc.

Correct
Deviations
 When the Project is Off-Track

(Why) Roots of the

problems

What’s wrong?

How
to
solve
Output
Project Control: Project is Off-Track

Monitoring indicates that (signs):

• Project is behind time-schedule, and/or

• Project has exceeded budget, and/or
• Quality of materials or finished work is below standard,
and/or
• Productivity is lower than as planned, etc.
Project Control: Project is Off-Track

When the Project is Off-Track, the Project Manager to

check all the resources (“4M”) available for Project
Control:

1. Money
2. Manpower (labor)
3. Materials
4. Machinery (Equipment)
 Project Control

(1) (2) (3)

Resources Mechanism &
Given the
for PC (the Elements of
Project is
4M’s) PC
Off-Track
• Adjust the
resources
(4)
• Adjust the project
Output characteristics:
size, scope, etc
• Project brought
back on-track

• Was the Project Control successful ?

• How can we tell ?
 Project Control

(3) 1. Adjust the resources

Mechanism &
2. Adjust the project
Elements of
characteristics: size,
PC
scope, etc

Adjust resources: Adjust Project

Characteristics:
• More labor? Better labor?
• Better supervision? • Reduce project size?
• More materials? Better Reduce project scope?
materials? • Terminate project?
• More equipment? Better
equipment?
• More money?
1. How can we tell when PC is needed?
2. What resources are available for PC?
3. What are the elements of PC?
 How can we tell
when Project Control is needed?
 Is Project Control is needed now?

How can we tell?

General Clues Specific Clues

Performance Cost Time “Primitive” Other

and Quality Indicators Indicators
How can we tell when Project Control is needed?

GENERAL CLUES (Meredith and Mantel, 2006)

Performance
• Unexpected technical problems arise
• Insufficient resources are unavailable when needed
• Quality or reliability problems occur
• Owner/Client requires changes in technical specifications
• Inter-functional complications and conflicts arise
• Market changes that increase/decrease the project’s value
How can we tell when Project Control is
needed?

GENERAL CLUES (Meredith and Mantel, 2006)

Cost
• Technical difficulties that require more resources
• Scope of work increases
• Tender amount (accepted for the contract award) is too
low
• Reporting of the monitoring results are poor/late
• Project budgeting for contractor cash flows not done right
• Changes in market prices of the inputs
How can we tell when Project Control is
needed?

GENERAL CLUES (Meredith and Mantel, 2006)

Time
• Technical difficulties require more time to solve
• Scope of work increases
• Unexpected utilities needing relocation
• Task sequencing not done right
• Required material, labor/equipment unavailable when
needed
• Key preceding tasks were not completed on time.
 How can we tell when Project Control is
needed?
SPECIFIC CLUES

“Primitive” indicators:
Equipment-hours
◦ Cost of activity (or of
project to date) is Total Man-hours

higher than expected

Amt of concrete used (tons)

0 500 1000 1500 2000

Amount input to date
 How can we tell when Project Control is
needed?
SPECIFIC CLUES
JAN FEB MAR APR MAY JUN

 “Primitive” indicators: Activity 1

planned
actual

• Activities are taking Activity 2

long than planned

Activity 3

NOW
 How can we tell when Project Control is
needed?
SPECIFIC CLUES

 “Primitive” indicators: $

70%
Program
(schedule)
• Cost of activity (or of 50%
Progress
project to date) is (actual)
higher than expected
now time
 How can we tell when Project Control is
needed?
SPECIFIC CLUES

Why are they “primitive”?

 May be biased.
 Do not consider that progress may be overestimated
or underestimated due to:
- execution of unscheduled work done, or
- execution of more work of low value and less work of high
value
 P R O J E K S TE S E N P E MINDAHAN S IS A P E P E J AL DI S E K S Y E N 21, S HAH AL AM,
S E L ANG O R , DAR UL E HS AN.

P HY S IC AL S -C UR VE
100.00 100.00
97.90
95.51
90.00
87.36
83.03
80.00
76.80
73.79
70.00
P
R 65.26
O 60.00
G 57.33
R
50.00
E 46.57
S S chedule
S 40.00 41.02 Actua l

% 31.21
30.00
26.08
20.00
16.18
13.27
10.00 10.46
6.09 7.10

- - -
1 Aug 07 1 S ep 07 1 Oct 07 1 Nov 07 1 D ec 07 1 J a n 08 1 F eb 08 1 Ma r 08 1 Apr 08 1 Ma y 08 1 J un 08

S chedule - 6.09 13.27 26.08 41.02 57.33 73.79 87.36 95.51 97.90 100.00
Actua l - 7.10 10.46 16.18 31.21 46.57 65.26 76.80 83.03
 P R O J E K S T E S E N P E MINDAHAN S IS A P E P E J AL DI S E K S Y E N 21, S HAH AL AM,
S E L ANG O R DAR UL E H S AN.

F INANC IAL S -C UR VE
80,000,000.00
77,000,000.00
75,149,326.36
73,176,483.56
70,000,000.00
67,452,278.65
63,578,268.65
P 60,000,000.00 60,095,847.76
R 57,765,169.95
O
G 50,000,000.00
48,579,933.20
R 46,142,962.78 S c hedule
E
A c tual
S 40,000,000.00
38,978,143.85
S 36,238,014.45

30,000,000.00 30,498,627.22
(

R 26,909,925.85
M
20,000,000.00
)

17,510,038.94 17,138,726.04

11,676,483.73
10,000,000.00 8,980,373.81
8,776,542.50

- - -
1 A ug 07 1 S ep 07 1 Oc t 07 1 Nov 07 1 Dec 07 1 J an 08 1 F eb 08 1 Mar 08 1 A pr 08 1 May 08 1 J un 08
S chedule - 8,776,542. 17,510,03 26,909,92 36,238,01 46,142,96 57,765,16 67,452,27 73,176,48 75,149,32 77,000,00
A ctual - 8,980,373. 11,676,48 17,138,72 30,498,62 38,978,14 48,579,93 60,095,84 63,578,26
Resources for
Project Control
Resources for Project Control

1. Money
2. Machinery (Equipment)
3. Materials and Supplies
4. Manpower (Labor and Supervision)
 Resources for Project Control:

MONEY

 Not a direct resource

 Rather, used to influence the amounts or quality

of the other resources (materials, manpower,
machinery)
 Resources for Project Control:

EQUIPMENT/ MACHINERY

 Often used to increase or improve labor in order

to speed up project

 Can be expensive

 May involve renting or purchasing

 Resources for Project Control:

MATERIAL/ SUPPLIES

 Increase in quality or quantity may be necessary to

enhance project control

 Improved inventory systems for materials

 Resources for Project Control:

MANPOWER

 Project problems (time delays, excess costs, poor

performance, etc.) are partly due to the human
element (action or inaction)

 In using Manpower as a tool for project control,

PM encounters human emotions (anger, fear,
frustration, etc.)
 Elements
of
Project Control
 Elements of
Project Control

RESOURCES-RELATED PROJECT-RELATED
 Elements of Project Control
RESOURCES-RELATED

 Re-allocation of Resources

1. Manpower-related control
2. Machinery-related control
3. Money-related control
4. Material-related control
 Elements of Project Control

RESOURCES-RELATED

 Re-allocation of Resources : Manpower

Also known as Human Resource Control:

• Lay-off/fire any under-performing staff
• Hire staff with needed skills
• Assign staff with specific skills to specific activities
 Elements of Project Control

RESOURCES-RELATED

 Re-allocation of Resources : Manpower

Issues:
• PM may be seen as a “stern disciplinarian”
• PM must avoid heavy handed actions,
• Fix problems without blaming people
 Elements of Project Control

RESOURCES-RELATED

 Re-allocation of Resources : Machinery

Also referred to as Physical Asset Control

• Decommission any under-performing equipment

• Bring in equipment with appropriate capabilities
• Re-assign specific equipment to specific activities
 Elements of Project Control

RESOURCES-RELATED

 Re-allocation of Resources : Machinery

Issues:

• Equipment decisions may involve some economic

analysis
• Equipment-based control easier than manpower-
based control
• Some trade-off may exist between manpower and
equipment utilization.
 Elements of Project Control

RESOURCES-RELATED

 Re-allocation of Resources : Money

Also referred to as ”Financial Resource Control”

• How much money should be spent?

• How should it be spent?
• PM assisted by:
- Project accountant
- Project Finance Manager
 Elements of Project Control

RESOURCES-RELATED

 Re-allocation of Resources : Materials

• Discontinue use of sub-standard material

• Seek new sources of superior material

 Elements of Project Control

PROJECT-RELATED

 Options:
• Reduce project size?
• Reduce project scope?
• Terminate project?
thankyou